Foreign PolicyForeign Policy

Actually, the Russian Economy Is Imploding

By Jeffrey Sonnenfeld and Steven Tian

22 Jul 2022 · 9 min read

Editor's Note

This FP analysis debunks nine myths which present a picture that the Russian economy is being resilient despite sanctions. It's not and here's how.

Five months into the Russian invasion of Ukraine, there remains a startling lack of understanding by many Western policymakers and commentators of the economic dimensions of President Vladimir Putin’s invasion and what it has meant for Russia’s economic positioning both domestically and globally.

Far from being ineffective or disappointing, as many have argued, international sanctions and voluntary business retreats have exerted a devastating effect over Russia’s economy. The deteriorating economy has served as a powerful if underappreciated complement to the deteriorating political landscape facing Putin.

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